SapuraKencana - Five Forces Analysis

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Intensity of Existing Rivalry Large industry size (SapuraKencana) Large industries allow multiple firms and produces to prosper without having to steal market share... Government limits competition (SapuraKencana) Government policies and regulations can dictate the level of competition within the industry. When... Relatively few competitors (SapuraKencana) Few competitors mean fewer firms are competing for the same customers and resources, which is a... Bargaining Power of Suppliers High competition among suppliers (SapuraKencana) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Low concentration of suppliers (SapuraKencana) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low... Volume is critical to suppliers (SapuraKencana) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... Threat of Substitutes Substitute has lower performance (SapuraKencana) A lower performance product means a customer is less likely to switch from SapuraKencana to another... Substitute product is inferior (SapuraKencana) An inferior product means a customer is less likely to switch from SapuraKencana to another product... Substitute is lower quality (SapuraKencana) A lower quality product means a customer is less likely to switch from SapuraKencana to another... High cost of switching to substitutes (SapuraKencana) Limited number of substitutes means that customers cannot easily switch to other products or... Limited number of substitutes (SapuraKencana) A limited number of substitutes mean that customers cannot easily find other products or services... Bargaining Power of Customers Buyers require special customization (SapuraKencana) When customers require special customizations, they are less likely to switch to producers who have... Low buyer price sensitivity (SapuraKencana) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product.... Product is important to customer (SapuraKencana) When customers cherish particular products they end up paying more for that one product. This... Limited buyer choice (SapuraKencana) When customers have limited choices they end up paying more for the choices that are available.... Threat of New Competitors Strong distribution network required (SapuraKencana) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... High sunk costs limit competition (SapuraKencana) High sunk costs make it difficult for a competitor to enter a new market, because they have to... High capital requirements (SapuraKencana) High capital requirements mean a company must spend a lot of money in order to compete in the... Strong brand names are important (SapuraKencana) If strong brands are critical to compete, then new competitors will have to improve their brand... Advanced technologies are required (SapuraKencana) Advanced technologies make it difficult for new competitors to enter the market because they have to... Industry requires economies of scale (SapuraKencana) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Patents limit new competition (SapuraKencana) Patents that cover vital technologies make it difficult for new competitors, because the best... Geographic factors limit competition (SapuraKencana) If existing competitors have the best geographical locations, new competitors will have a... High switching costs for customers (SapuraKencana) High switching costs make it difficult for customers to change which products they normally... Entry barriers are high (SapuraKencana) When barriers are high, it is more difficult for new competitors to enter the market. High entry... What is Porter's Five Forces Analysis? WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to sapurakencana's five forces template. See WikiWealth's tutorial for help. Is WikiWealth missing any analysis? Check out our entire database of free five forces reports or use our five forces generator to create your own. Remember, vote up sapurakencana's most important five forces statements.